Question

Construct the index of industrial production from the following data:

Commodity	Output (in tonnes)		Weights
	2011-12	2016-17
Mining	120	180	25
Electrical Products	200	290	45
Manufactured Goods	150	220	30

Answer 1

Industry	Output in 2011-12 (q0)	Output in 2016-17 (q1)	Weights (W)	$\left(\frac{q_1}{q_0}\times 100\right)$	$\left(\frac{q_1}{q_0}\times 100\right)W$
Mining	120	180	25	150	3750
Electrical Products	200	290	45	145	6525
Manufactured Goods	150	220	30	146.67	4400.1
			ΣW=100		14675.1

Index Number of Industrial Production $$\begin{gathered} =\frac{\mathrm{\Sigma }\left({\displaystyle \frac{q_1}{q_0}}\times 100\right)W}{\Sigma W} \\ =\frac{14675.1}{100}=146.75 \end{gathered}$$